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Mar 31, 2025
Paycom Q1 2025 Earnings Report
Paycom delivered strong Q1 2025 results, highlighted by solid revenue growth and expanding margins.
Key Takeaways
Paycom Software posted $530.5M in revenue for Q1 2025 with net income of $139.4M. Adjusted EBITDA rose to $253.2M and the company raised its full-year outlook on the back of increased automation adoption and margin expansion.
Revenue reached $530.5M, growing 6.1% year-over-year
Adjusted EBITDA increased to $253.2M, with a margin of 47.7%
GAAP EPS was $2.48 while non-GAAP EPS reached $2.80
Cash and cash equivalents rose to $520.8M with no debt on the balance sheet
Revenue by Segment
Forward Guidance
For FY25, Paycom expects total revenue between $2.023B and $2.038B, recurring revenue growth of ~9%, and an adjusted EBITDA margin of ~42%.
Positive Outlook
- Raised full-year revenue outlook
- Recurring revenue expected to grow ~9%
- Interest income from client funds forecast at $110M
- Adjusted EBITDA margin projected at ~42%
- Momentum driven by automation and operational efficiency
Challenges Ahead
- Slight decline in interest income YoY
- Increased R&D and administrative costs
- Decline in GAAP net income due to prior year one-time benefit
- Cash used in financing activities exceeded $1.4B
- No international revenue segment reported
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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